Why does my return state IRS hasn’t finalized forms. I have been using Turbo Tax for years and never had this happen.

The problem is not with TT, but with the IRS.  See the following for when IRS forms will be finalized.

https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_online_individual.html

As  of today 3/11 TT now has the 1116 sch b available for filing.

I received an email from TT asking if I had received the answer that helped. I did remove money from my 401K under the Cares Act but that went on my 2020 return. I read on TT that could possibly be considered income for up to 3 years. In 1/3rds. Could this be my hold up?

Yes ... if you took a covid distribution in 2020 and choose to spread the tax over 3 tax years then yes, the new form 8915-F is what you are waiting on ... expected by the end of the month.